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In This Article I’m Going To Describe The Process In Which You May Apply To Get Life Insurance Coverage If You Have A Felony History, Parole Or Some Sort Of Misdemeanor Conviction
Most likely you’re reading this article today because either yourself or a loved one believes you may experience difficulty in applying and getting approved for life insurance with the history of a felony, jail time, or a criminal record.
Perhaps you’ve even attempted to apply for life insurance with another life insurance agent and found that you were declined. You may be feeling frustrated and wonder if there are any other options for you to get coverage. If you feel like you fit into one of these descriptions, then this article will be perfect for you.
We’re going to talk about the different factors that life insurance companies look at it when determining your level of insurability. We’ll also talk about what to do if you have already been declined because of a felony history and we’ll cover specific types of felonies and how they impact your coverage.
We will then cover the options available to you based upon what type of felony you’ve had and the length of time since the felony occurred. You’ll also find some tips and strategies on how to start your life insurance program off if you have a felony on your record that is causing you more problems than it should.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation. Enjoy!
Here’s An Overview Of Today’s Topic:
- Factors Insurance Companies Consider During The Application Process
- What Crimes Are The Hardest To Get Life Insurance Coverage For?
- Have You Been Denied Life Insurance Because Of A Felony?
- What About Violent Felonies?
- Stories From The Field
- Top 7 Reasons People Buy Whole Life Insurance
- Case Study Examples
- What Type Of Life Insurance Products Are Available To Those That Have Had A History Of Felonies?
- Something Is Better Than Nothing
Factors insurance companies consider during the application process
There are a number of factors a life insurance company is going to be concerned with as they try to underwrite a policy on you and you have a history of a felony.
We here at Buy Life Insurance for Burial regularly work with client’s under a variety of circumstances. If you’d like to receive a free quote, give us a call at (888) 626-0439.
We’d also be happy to respond to any messages you may send us using our contact us box on this page. You will be under no obligation to buy from us if you request a quote.
First, how long have you been out of jail?
The length of time in which you’re out of jail has a direct impact on your level of insureability. Generally speaking, the longer the time you’re out of jail, the easier time you’ll have with different options for life insurance. Generally speaking, what we mostly see is that you have to be out of jail for two years at a minimum for more companies to become available to give you some sort of quality life insurance coverage.
With that said, there are some options we’ll discuss later about how you can get life insurance with less than two years in jail. We’ll discuss it more in length and give you more information on how that works shortly.
How long has it been since you finished parole in combination with jail time?
Usually there is a parole period for any individual that has committed a felony. Insurance companies will want to know how long your parole period has been exhausted before they determined what kind of insurable potential you have. Again, just like with jail time, the longer period of time it’s been since your parole, the greater chance you have of getting approved for some kind of life insurance coverage.
And just as we mentioned prior, even if you do have some kind of issue, for example with the frequency of the parole, it may be likely that we can still get you some kind of plan in place.
Type of felony
Naturally all felonies aren’t the same and certain companies will treat some felonies differently than others.
Generally speaking, drug and alcohol felonies are more aggressively criticized by life insurance companies than felonies that have assault, larceny or vandalism attached.
If you have a drug or alcohol felony, it’s likely you will need to let at least 10 years pass before you may qualify for more traditional types of life insurance. Keep in mind there are life insurance coverage options available to you if it’s been longer than two years since your felony, even if drugs or alcohol were involved.
What crimes are the hardest to get life insurance coverage for?
What follows is a quick list of the most difficult felonies and crimes to get coverage for. Most likely you will only have the option of getting guaranteed issue coverage or worst case scenario, simplified issue whole life insurance.
Here’s the list of felonies that will severely limit your coverage options:
- Child molestation
- Drug trafficking
- Rape convictions
There may be some occasions where if the the jail time and parole time exceeds 10 years, you may be eligible for traditional plans. Although I wouldn’t bet on it. It’s more likely that you’re going to experience more difficulty than ease in these circumstances. So a simplified issue, products or guaranteed issue product might be a better choice.
Have you been denied life insurance because of a felony?
Buy Life Insurance for Burial can help if you have been denied life insurance because of a felony. At this point if you’ve been declined life insurance and have a felony on your record you’re probably wondering what options you have left to get coverage. First, let’s consider what life insurance companies generally look at in order to determine insureability:
- Did you serve jail time
- Length of jail time
- Felony type
- Marijuana conviction
What I have seen personally from clients that had felony convictions and spent time in jail is that the options began to become better and more prolific the more time passed. Allowing two years or more to pass after a felony seems to be a good length of time.
If you have been denied insurance because of a felony, simplified issue or whole life insurance may be the answer. These products have less underwriting than traditional products that typically make you take an exam and pull detailed personal records about your health and lifestyle. Generally, what these companies are looking for is a clean record of health and lifestyle over the last two years. As long as your medical records show this is the case, many times they will approve people even with convictions and felony records mentioned above.
However, if you are under the two year limit for these types of plans, you may want to consider what’s called a guaranteed issue life insurance policy. These types of policies don’t ask any health questions or lifestyle questions and as long as you can sign your name on the application, your coverage is approved and you’re covered for accidental forms of death.
The downside to these guaranteed issue plans is that you’re only covered in the case of a natural death after two years of the policy being effective. So that means you don’t really have coverage for anything other than natural death for two years. However, there are going to be circumstances where it may takes years to get a better deal in place if you have one of the more difficult felonies to get life insurance coverage for.
In this instance it may be a good idea to attempt to qualify for one of these plans and get through the two year period of time so that you have at least some kind of life insurance coverage on the books. Remember Buy Life Insurance for Burial is always able to competitively shop quotes regardless of your circumstances.
If a period of time has passed and the likelihood is higher that you may qualify for some other kind of plan, that would be an improvement upon a guaranteed issue basis. But understand that this may be the only option you’re looking at if you’re risk for getting coverage is higher than what we would like to see.
What about violent felonies?
Just like drug and alcohol felonies, violent felonies generally are going to be the most restrictive in regards to the kind of coverage that may be available to you.
What type of life insurance products are available to those that have had a history of felonies?
As we’ve somewhat discussed already, there are different kinds of life insurance programs available to those that have felonies. The kind of product depends solely upon the goals of the client, as well as the type of felony committed, length of time served, and the period of time that has passed since the felony was committed.
What follows is a quick list of the most common types of plans and the likelihood of being approved for these plans based on the nature of clients who have been convicted of a felony.
If you’re curious what you might qualify for, speak to one of our friendly representatives by calling (888) 626-0439.
Alternatively you can send us a request using the contact us box found on this page. We will get in touch within 24 business hours with a custommized quote.
Stories from the field
I like to share stories from my experience in the life insurance industry to demonstrate the many important lessons I have learned over the years about the value of quality life insurance.
This story comes from one of my first experiences and reinforces in my mind the importance of making sure that we help our clients out by offering them the best available opportunities for life insurance.
Sadly this is a good example of how life insurance can go wrong and have a negative impact on loved ones who are left behind when you die.
It was a hot Georgia summer in 2011. I was out making house calls to clients who had requested information. I pulled up to a single wide trailor and was invited in by a middle aged gentleman.
I’ll never forget the inside of his trailor. It was filled with fish aquariums and there were wasps everywhere. I was sure I would get strung before I got out of there!
As we sat down to talk, this gentleman said he had a story to share with me. He proceeded to tell me about his father who had instilled in him a desire to make sure he got quality life insurance in place.
It turns out his father felt life insurance was important, but didn’t understand how life insurance policies can differ from agent to broker. So he bought an insurance plan from Colonial Penn and was under the presumption that he would be covered for natural and accidental death.
He immediately sat his kids down and told them he had decided he didn’t want them to worry about taking care of his final expenses, so he had purchased a life insurance policy to take care of everything.
Naturally, his kids were relieved to hear this news. So about a year later when their father died unexpectedly from a stroke, they presented the funeral home with the policy their father had purchased, assumming all expenses would be taken care of.
But they were surprised to find out that the funeral home refused to take the policy as payment. When they questioned why, they were told that the policy had not yet taken effect, that there was a 2 year wait period for life insurance bought through Colonial Penn, which meant they would not get a death claim pay out.
This was all very frustrating news to the children. It meant they had to scramble to come up with funds to pay for their father’s funeral. Funds that they didn’t have in savings. For my client, this meant he had to take out a second mortgage on his home.
After telling me all of this he said he didn’t want the same thing to happen to his kids that had happened to him. He wanted to be sure he had first day coverage in place so that he wouldn’t have to burden his family.
Though he knew his father meant well, there was some animosity there for having to go into debt to pay for his father’s funeral. He didn’t want his kids to remember him like that.
We got first day coverage in place for this gentleman so that he could have peace of mind in knowing his family wouldn’t have to worry about paying for his funeral by going into debt.
Our goal at Buy Life Insurance for Burial is to ensure all of our clients have quality coverage in place so that if they pass away, their loved ones are financially able to pay for final expenses and not have to worry about funeral or cremation costs.
Term Life Insurance
Term life insurance is the most popular form of life insurance. It gives the best value and best amount of coverage for the least amount of price relative to the other kinds of plans available. It covers natural and accidental deaths and can replace your income so your family has money to live off of if you happen to pass away.
The downside of a term insurance plan is that you can outlive it. And if you still need life insurance after you outlive a term plan, you have to go reapply with the potential of not being approved. Applying later in life carries with it the risk of being older and having health problems you didn’t used to have. The likelihood of getting term insurance is very difficult after the first five to 10 years after a felony conviction, jail time and parole has been completed.
I approach getting quality term insurance for individuals with a felony only if it’s been five years or longer since their conviction and jail time. This doesn’t include some of the harder crimes to get coverage for. As mentioned earlier, under those circumstances I probably wouldn’t offer it at all because of the likelihood of being turned down, as many companies are very negative towards this type of a criminal history.
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Whole life insurance
Whole life insurance is permanent protection that’s designed to never cancel due to age or health. It is designed for people that want to make sure some kind of life insurance was left behind when they pass away. The traditional types of whole life insurance where exams and detailed underwriting is required most likely will preclude you from getting coverage in the same way as term insurance.
This means that if you’ve done hard crimes such as those mentioned above, you probably won’t be approved the traditional way for a whole life insurance plan. However, if it’s been at least five years and your felony falls into the category of assault, larceny or vandalism charge or a marijuana conviction, you may find a little bit more leniency in a traditional approach to getting life insurance.
Rates For $10,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
$150,000 Whole Life Insurance, Life Pay
$250,000 Whole Life Insurance, Life Pay
Top 7 reasons people buy whole life insurance
1.Does not cancel due to age or health
One of the biggest reasons people buy whole life insurance is because it does not cancel, regardless of your age or health condition. This means it is a non-bias type of insurance that will last a lifetime.
2.Rates never increase
Some types of life insurance have rates that do not stay the same and tend to go up the longer the policy is in place. But that is not the case with whole life insurance. The rates are guaranteed to never go up.
3.You can pay up your whole life insurance
This is a unique feature with this type of insurance that allows you to pay up your policy and no longer have to make payments, much like how you pay off a house.
4.Can grow tax-free cash value
Many people like the fact that you can use your whole life insurance policy to grow a cash value. This money can be borrowed out of your policy, giving you a readily available loan that is tax-free.
5.A permanent solution to permanent problems
If you have a permanent financial problem, whole life insurance is a great option. With permanent coverage you can have peace of mind in knowing your permanent obligations are covered.
A couple of examples of permanent financial obligations may include burial expenses, estate tax concerns, as well as business decisions where funding has to be arranged to buy out a partner’s share if a partner were to pass away.
6.Exams are optional
There was a time where exams were a natural part of the life insurance application process, but that is no longer the case. Due to the competitive nature of these companies, the need for a faster, easier application process is now the norm.That means exams are no longer required for smaller amounts of coverage. Though we do often recommend exams for lower rates, if you are afraid of needles or simply don’t want to go through the exam process, that option is usually open to most applicants.
7.Best use of your premium dollar
Though there are cheaper policies out there, they do not offer a permanent solution for coverage. When you look at the dollar per dollar coverage, whole life insurance offers a better overall value.
Accidental life insurance
You may qualify for an accidental life insurance plan much easier than a traditional type of life insurance plan. Generally, accidental life insurance plans ask little to no health history questions for the lifestyle section, which means it may be a good way to get some kind of coverage on the books, given the difficulty in getting coverage considering your felony background.
Final expense simplified issue, whole life insurance simplified issue
Whole life insurance may provide a bridge to getting you some kind of coverage in place after a minimal period of time has passed. Most commonly, I recommend simplified issue whole life insurance plans to my clients that have had at least two years pass since they’ve been out of jail, have had their felony conviction, or have finished parole.
The options for full coverage equality prices are pretty readily available once that two year period is up and it may be the only way that you can get fully protected with a permanent type of product without having to go the traditional route and end up being declined.
Guaranteed issue plans
As mentioned previously, guaranteed issue plans are most commonly used when somebody has recently gotten out of jail, experienced a felony conviction, or is on parole and will be for a continuous period of time. This is the kind of plan you want to pick up if no other options are available to you.
$50 a Month – Guaranteed Universal Life Insurance
$100 a Month – Guaranteed Universal Life Insurance
$150 a Month – Guaranteed Universal Life Insurance
Though we can’t guarantee the same outcome for every individual, we have access to a number of providers, which gives our clients the best possible chance of getting affordable coverage.
A client recently contacted us looking for burial coverage. Mr. Smith was 45 years old and had a misdemeanor on his record, which he was concerned would affect his application. He also was a heavy smoker, though otherwise, he was in overall good health.
This client had done some research regarding the coverage amount that would be appropriate. He figured he would need between $7,000 to $12,000 to cover opening and closing, service, embalming, and burial.
I went away with this client’s information and found a burial plan that offered first day coverage. Though we can’t guarantee the same outcome for every client, we do our best to find some kind of coverage for which we can qualify every client that comes to us.
Something is better than nothing
As you can tell throughout this article, an individual who has a felony record is likely to face some level of difficulty finding coverage. This may lead to frustration and the thought that coverage isn’t necessary.
But if you’re serious about getting life insurance, and I’m sure you are if you’re reading this article, you need to understand that something is better than nothing.
People who read these kinds of articles generally understand this concept and don’t need to be sold on the necessity of having life insurance coverage. What they need to be sold on and convinced of is that the coverage they are getting is good value and that they have coverage when they need it.
When brokers at Buy Life Insurance for Burial and other companies have these plans that have restrictive coverage amounts because of the nature of the background of the applicant, it takes a little bit more persuasion to try to convince you that your getting good value. Here is my attempt to do so.
I implore you to take me up on my offer to get coverage. The reason why is because with the passage of time, you will have coverage in place eventually. Your final expenses will be covered even if you have to start out with a plan you did not set out originally to purchase.
You’ll have some kind of protection for the family that you love. And as time passes, we here at Buy Life Insurance for Burial will be in total support of helping you get additional coverage or help you reapply for coverage to see if we can get you a superior value later on.
The worst thing possible is if somebody knows they need life insurance and they pass it up entirely because they feel like they’re getting ripped off. The truth is is that there’s never been a person who’s received a death benefit jack or felt that they’ve been ripped off. If there is a need for coverage, passing up on buying a life insurance policy because it isn’t exactly what you want doesn’t solve your problem.
The problem is not paying the premium because you won’t get the coverage. Life insurance is really important – let us here at Buy Life Insurance for Burial help.
Thanks for stopping by and reading this article. I hope it has given you a better understanding of what life insurance can do for you and your loved ones. If you are curious what your monthly rates might look like, give us a call at (888) 626-0439.
You can also send us a request using the message box on this page. We hope to speak with you soon about how we can meet your goals and budget for quality life insurance coverage.